News Column

Bank Blacklists Narok Barley Farmers

June 18, 2014

Kiplang'at Kirui



MORE than 300 barley farmers in Narok county have threatened to abandon the crop after a bank blacklisted them in the credit reference bureau.

The farmers claim that Co-operative Bank has blacklisted them after CIC Insurance failed to pay a shortfall of Sh293 million.

Speaking in Narok town yesterday, the farmers said they had entered into an agreement with East Africa Breweries Ltd to give them farm inputs on loan.

Barley Growers of Kenya treasurer Philiph Koila demanded that CIC Insurance pays the amount because they had offered to cover the loss.

He accused EABL of approaching Co-operative Bank and CIC Insurance to finance farming without their knowledge.

"We are shocked that the bank has blacklisted us yet we were told that the shortfall was to be paid by the insurance company. All the farmers paid the premium and it is totally unlawful for CIC to renege on the deal it had with EABL and the bank," Koila said.

The farmers said they were told that as a way of avoiding losses in case of crop failure, EABL approached CIC to insure the crop.


For more stories on investments and markets, please see HispanicBusiness' Finance Channel



Source: AllAfrica


Story Tools






HispanicBusiness.com Facebook Linkedin Twitter RSS Feed Email Alerts & Newsletters